Transcript Power Point

Welfare Reform Act (1996)
Introduction
• The Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) of 1996 sought to
fundamentally change the “culture of poverty” in
America.
• The act:
• Ended welfare as an entitlement program.
• Placed a lifetime limit on benefits of 60 months.
• Placed money in the hands of the states, which
allowed for innovation in welfare reform.
Welfare Reform Act (1996)
Introduction
• Recipients of TANF (Temporary Assistance for
Needy Families) would have to work or be looking
for work.
• Recipients must leave welfare rolls completely after
a total of 60 months of Federal benefits.
Welfare Reform Act (1996)
Evaluation
• The bill was followed by a reduction in
unemployment from 1996 to 2000.
• Some claim this reduction occurred because of the
PRWORA.
• Others note that the economy grew rapidly during
this period.
Welfare Reform Act (1996)
Evaluation
• The bill can be particularly difficult to implement in
rural areas because of a lack of jobs, distance to
work, low availability of child care, and poor quality
labor in areas of persistent poverty.
• Most states have extended the limit on receipt of
benefits:
• to assist persons in need, and
• to bring Federal funds into the state.